Summary of A discussion of Industrial Development Strategy for Iran with the focus on small Entrepreneur industries versus main industries
Historically, industrial capitalism in Iran has faced many problems. Management of big and public industries by government and public sector in recent years has been entangled with bureaucracy and complexities. The process for selection and appointment of managers in these industries has not been very structured.
Government’s excessive focus on big industries under its own management and allocation of huge resources from development programs for the expansion of these industries without regards to profitability and economic justifications as well as the lack of attention to small industries have been the mark of industrial development in the country. All these have produced lack of coordination and communications among different industrial sectors, which in turn produced difficulties for planning and decision-making.
The definition of small and medium industries in different countries and parts of the world vary significantly. In fact, economic and industrial circumstances in every country define small and medium industries. Some criteria used to define small and medium industries are: number of employees, capital, total assets, total sales, and production capacity. The most widely used criterion for small and medium industries is the number of employees.
The differentiation between small and medium industries with big industries has been taken place with the purpose of eliminating market failure resulting from their small sizes. This division is the base for definition of “small and medium industries”. Because, the line for market failure defers in different countries and depends on economic conditions in those countries, therefore, the definition and criterion for small and medium industries are different.
Technological advancement in production in recent decades, falling short of mass production in big industries, trend for production flexibility in small and medium industries have resulted increased competitiveness among small industries leading to production shift from big industries to small industries. However, this shift does not mean the elimination of big industries and substitution by small industries. The trend has been increased interrelation between the two sectors. The work division between small and big industries has been such that instead of creating competition, they complement each other.
World economic circumstances have lead to further growth of small and medium industries in different countries. For example, management structure of small companies is their big advantage for innovation when compared with big companies. Bureaucracy and structure of big enterprises prevent them from accepting research programs with high risk because every innovative program passing through levels of bureaucracy in big industries faces negative prejudgments and fails to materialize in practice. However, survival of many big industrial companies depends on acquiring innovative thinking that adventurous investors use to convert thoughts into actions. Meanwhile, small industries depend on big industries for lack of financial resources and credit facilities.
Investment in most countries in the world goes toward small and medium industries that bring quick results. Experience and successes gained in East Asia from small industries are good examples.
Small industries in Iran make up 93% of the industrial sector providing 45% of total employment. The definition of small enterprises varies in different countries and depends on the size of country, economic level and more important the objectives for differentiating between small and big enterprises. Small and quick revenue generating industries are one of the most effective ways to increase employment and reduce dependence on oil industry in our country.
In recent years, the importance and role of small and medium industries have been on the rise in both developed and developing countries. Using new technologies in production and communication in the past two decades have created new changes in production and distribution methodologies as well as organizational structure in enterprises leading to increased emphasis for small and medium enterprises.
Increased competition and tendency in companies to concentrate on critical activities and functions are reasons for vertical division of companies as well as establishment of contractual relationships with suppliers of raw materials and parts. All these changes have increased importance of small industries; of course, not the very independent small industries, but rather small companies that are a part of the network and production chain capable of providing technologies, competent human resources and expert management.
As learning processes in small and medium industries lead to training of capable managers and omission of these industries from competition (because of bankruptcy) produce lower losses to society, therefore, small and medium industries are good ground for creation of competitive industries.
Apart from the above advantages, governments always adopt special strategies and policies to promote small and medium industries, and to facilitate entrepreneurship in economy in order to ensure competitiveness in free market and prevent monopoly by big companies. Experiences have shown that competitiveness of big industries depends on suitable relationships with dynamic and innovative small and medium industries. Moreover, small and medium industries can make good ground for competitive big industries.
This article reviews the relationship between main industries and small and entrepreneurship industries; compares the definitions of small industries in different countries, and determines the effective factors in expansion of the role of small industries as a way to create a framework for formulation of strategies and policies for industrial development. The article later provides an analysis of past and present situations of small industries in country. Finally, taking into account the perspective of small industries, suggests strategies and policies for strengthening industrial sector in Iran.
Implementation programs for increased strength and development of small industries should include: encouragement of domestic and international investments in small industries; modification of policies to increase small industries’ shares of gross domestic product; increased efforts to create jobs through development of self-employment; encouragement of entrepreneurship and group activities in rural areas; development of domestic financial resources; development of co-operative sector; ease of regulations for investment in industrial sector; tax reduction; making financial resources in currency exchange available to small industries; make more financial resources available to small industries by simplifying bank procedures in approving loans and granting financial instruments; providing tax and duties exemption for investments in less developed areas; increase level of workers’ skills employed in enterprises, strengthen industrial clusters for different guilds, establishment a consulting group for setting policies for small enterprises, etc.
Considering the importance and effectiveness of small industries and entrepreneurship as well as positive experiences in industrial countries from investment in these industries, and establishing constructive interfaces between big and small industries, also the need to pay attention to self-relying and independent industries in the country, we should maximize economic development and savings by adapting a non dominant growth strategy and investment in selected industries or economic sectors.
In this case and with consideration of the conditions in our country, investment in those industries and economic sectors that bring about maximum social and economic benefits can act as an engine for economic development. Using this strategy, we can identify the big industries such as auto, steel, petrol and main industries and create related small industries in less developed areas in the form of industrial complexes and clusters, and establish complementary industries.
This process will create an industrial hierarchy and a kind of industrial connectivity. Small industries within industrial complexes and clusters will perform as part of objectives of big industries. Big industries have the benefit of having high technical expertise, exceptional training capabilities, advertising programs, ability to undertake industrial renovation.
With a division of functionalities, we can establish many small and medium industries working under with connections to big industries. In order to establish relationships between small and main industries, there is no need for small industries to act as subsidiaries to big industries from the financial point of view, but, from science, technological and market points of view, they can form an industrial chain.
Economy will have a gradual and sustained progress in such situation. Therefore, first step is investment in projects that have better economic justifications and then this sector will pull other sectors forward. Investment in selected strategic industries or economic sectors will lead to new investment opportunities resulting to further economic development.
Growth will accompany development, making its way from progressive sectors of economy to follower sectors, from one industry to another, and from one enterprise to another. Growth of one or several economic sectors will create conditions for the growth of other sectors of economy.
In this strategy, the investment in infrastructure will go up at the first phase that facilitates investment in direct producing activities. When economy enters into sustained growth and interrelationships between industries advance to the point of becoming complementary to each other, we will experience higher employment and increased effective demand, which will result to a balance growth automatically.
Bibliography (Main Resources):
1. Industrial Strategy ; Prof.Masoud Nili ; Sharif University Publish ; 2004
2. Small Industries and Economic Growth of India ; Dr Rao ; Translated to Persian by Industrial Ministry 1992
3. Iran’s Small industries organization ; Industrial Mnistry 2003
4. The role of SMEs in Taiwan’s economy ; Industrial Ministry 2002
5. UNIDO ; Strategies of development and modernization of small industrial and commercial enterprises ; Industrial Ministry 1996
6. Successful politics of small industries development in 20 developed and developing countries ; Karafarinane Basir ; 2005
منابع و ماخذ:
1. استراتژی توسعه صنعتی کشور نویسنده:مسعود نیلی و همکاران موسسه انتشارات دانشگاه شریف) 1382(
2. صنایع کوچک و اقتصاد در حال توسعه هندوستان نویسنده :دکتر رائو ترجمه کمیته صنایع انتشارات جهاد سازندگی )1366(
3. سازمان صنايع كوچك ايران (1380). مجموعه اهداف، سياستها و دستورالعمل هاي اجرايي. تهران: سازمان صنايع كوچك ايران
4. نقش بنگاههاي كوچك و متوسط در اقتصاد تايوان، گروه مطالعات سازمان مدیریت صنعتی
5. يونيدو (1373). استراتژي هاي توسعه و مدرنيزه كردن واحدهاي كوچك صنعتي و بازرگاني. ترجمه: وزارت صنايع، مديريت صنايع كوچك. تهران: وزارت صنايع
6. سیاستهای موفق توسعه صنایع کوچک در 20 کشور صنعتی و در حال توسعه (سازمان صنایع کوچک ایران با همکاری کار افرینان بصیر)(1380)
7. جهاني شدن وتوسعه بنگاهاي كوچك ومتوسط ترجمه نعمت اله تقوي با همكاري محمدرضا اسماعيل نيا انتشارات جامعه پژوه (1383)
مقالات برگرفته از سایتهای اینترنتی:
8. ارائه تجارب قانوني و نهادي كارآفريني در اروپا- با تاكيد بر كشور ايتاليا دكتر علي امامي ميبدی عضو هيئت علمي دانشكده اقتصاد دانشگاه علامه طباطبايي پایگاه مقالات مدیران
9. چشم انداز اقتصاد ایران. احمد توکلی ، رییس مرکز پژوهشهای مجلس ، دفتر پژوهشهای مجلس شورای اسلامی،1386 برگرفته از سایت : آفتاب
10. چالشهای صنعتی شدن ایران در یک نگاه نادر هوشمندیار استاد دانشگاه و تحلیلگر مسایل مدیریتی سایت :مدیران
11. اقتصاد ایران تنگناها و راه حل ها نویسنده :صادق خلیلیان استاد اقتصاد کلان دانشگاه تربیت مدرس و مدیر گروه اقتصاد کشاورزی سایت: شبکه خبر دانشجو
12. مجموعه اي از خلاصه گزارش¬هاي طرح هاي تحقيقاتي معاونت امور اقتصادي وزارت امور اقتصاد و دارایی سایت : پایگاه مقالات مدیریت
13. گزارش صنايع كوچك و متوسط گروه مطالعات SMEs سازمان مديريت صنعتي سایت آفتاب
14. كليات برنامه ملي توسعه خوشههاي صنعتي كشور معاونت برنامهريزي و توسعه دفتر خوشههاي صنعتي خرداد 1383
منابع قانونی و حقوقی :
15. اساسنامه شرکت مادر تخصصي سازمان صنايع کوچک و شهرکهاي صنعتي ايران
16. آيين نامه اجرايي گسترش بنگاه هاي کوچک اقتصادي زودبازده و کارآفرين
17. سند راهبردی توسعه ایران (1404-1385)
18. اصل 44 قانون اساسی کشور
19. قانون برنامه چهارم توسعه ماده 39
20. مرکز آمار ایران
21. مصاحبه مهندس خليلي رئيس هيات مديره انجمن مديران صنايع و كنفدراسيون صنعت ايران در زمینه راهبردهای توسعه صنعتی سایت خبری اتاق بازرگانی و صنایع و معادن تهران به نقل از روزنامه صنعت و توسعه
22. مصاحبه مسعود شفيعي مشاور مديرعامل سازمان صنايع كوچك و شهرکهای صنعتی ایران در زمینه صنایع کوچک و کار آفرین سایت اطلاعات